Broadband story unconvincing, a disaster for NZ

MEDIA RELEASE
03 February 2006

Broadband story unconvincing, a disaster for New Zealand

Yesterday’s announcement by Telecom that it had only delivered 63,000 wholesale broadband customers against a target of 83,000 further highlights how Telecom is stifling progress to protect its monopoly stranglehold on New Zealand businesses and homes.

TelstraClear Chief Executive Allan Freeth says this situation is hampering New Zealand’s economic growth and productivity as the country’s broadband capability slips further behind the rest of the world and our major trading partners.

“Telecom’s claim that it is delivering New Zealand a “strong and growing broadband story” is an unconvincing attempt to fool New Zealanders into thinking things are better then they really are.”

New Zealand’s business broadband services are the second most expensive in the world behind Mexico and users have been accepting internet speeds which are packaged as broadband but are often not much faster than dial up internet. Interestingly, Mexico is the only other country besides New Zealand not to allow Local Loop Unbundling. ”

Dr Freeth says Local Loop Unbundling (LLU) is the way forward for driving uptake of broadband.
“Local loop unbundling is part of the package that will lift New Zealand’s performance to the top half of the OECD by enabling true competition in the telecommunications market. This will encourage innovation and productivity in business and the community.”

“We maintain our call for a speedy review of the regulatory environment by the Minister, with the introduction of unbundling soon afterwards so New Zealanders can access the type of services enjoyed by our overseas counterparts.”

ENDS

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